I heard this multiple times from some wise people. “If you have little money, invest in gold. If you have little more money, invest in land”
I personally, always wanted to invest into land for the love of farming (heart decision) and at the same time for safety of investment along with high appreciation possibilities (brain decision)
When I looked for lands to buy, quickly realized that smaller acreage of land parcels needs higher amount per acre and as an individual I don’t have that high amount investment capacity / appetite.
Larger pieces of lands have attractive per acre price point but needs to have large capital to enjoy that lower per acre amount.
That’s when I combined forces with friends and family to form a group to combine our small investment capital strength to buy larger acreage of land. We combine our capital, invested into lands and enjoying the appreciation.
During this journey, multiple people with similar mindset approached me to become part of the group to join forces to invest into farmland Realestate. From the beginning, I strongly believed in perfect organization structure and documentation as money matters can quickly spoil relationships when expectations mismatch and communication is not clear.
“Brutally Honest” is the comment I receive whenever I explain to people on the propositions. I like it that way because everyone gets exact clarity on what each of us get into.
First thing I tell anyone who are interested in getting into these investments is that “Any investment is subject to market risks”. Key is to understand all the risks before getting into investments. For those who would like to be 100% safe with investments, keeping money in the bank may be one of the option.
With many people approaching looking for investment options, I have created the formal model and named it “VVF Bhoomi”. VVF Bhoomi is one of multiple lines of businesses of VVF AgTech Inc.
VVF Bhoomi is a platform that gives individual investors with small investments become part of a large group to combine capital forces and buy large Realestate assets for long term appreciation.
VVF Bhoomi platform is a combination of Technology Platform to onboard investors and formal SEC Registrations for private security dealing.
Any offerings by individuals or entities that collects money with a promise of a return requires formal filings with SEC (Security Exchange Commission) . Any lapses with this formality is a serious offense and shouldn’t be taken easily.
All offerings by VVF Bhoomi will be formally registered with SEC.
The technology platform will host offerings in which individuals can invest into projects after understanding the details on a web portal. All the details of the project will be available on the portal along with documentation signatures and other formalities.
Realestate asset will be owned by an entity that’s formally registered and documented.
Investors become LP (Limited Partner) in an entity that owns the asset. They get membership interest in the entity for the amount of money they invest.
A formal entity (subsidiary of VVF AgTech Inc) will be a GP (General Partner) who will manage the entity owning the asset.
GP and LPs together hold the land for a specific period and sell it for price. The profit/loss out of the sale is distributed across the GP and LPs based on the proportion of the membership interest holding. In simple words membership interest can be looked at as the % of share in the overall entity.
GP will have a platform fee and other fees to manage the complete show. Profit/Loss will be calculated as the difference in amount between
amount invested, costs of management and any other expenses and amount received after sale.
Remember, we don’t always talk about profit in business. Businesses will always have losses based on circumstances. While calculating profits, one should always needs to be mindful of scenarios that result into losses. While real estate investments are relatively profitable, there can be many scenarios like recession that impacts appreciation.